Amersham Growth Fund

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The AGF Fund is principally a “follow-on” fund for investee companies that have previously undergone appropriate due diligence and have received early stage investment perhaps via an EIS or SEIS Investment.

  • £25,000
    Min. Investment
  • Generalist
    Sector
  • EIS / SEIS
    Fund Type
  • Evergreen
    Closing Date

Whilst AGF is a generalist fund it has an emphasis on growth opportunities in 'Channel' sectors which include Technology, Media (Film & TV), Mobile and Interactive Games, Consumer Brands , General EIS and General BPR. The Fund is an “evergreen” fund with closes planned for both prior to the end of the 2020/21 tax year and in subsequent tax years. There will therefore be several different tranches of investments and the type and degree of diversification will depend on in which tranche(s) an investor is invested. In line with policy following UK government guidelines caused by the current pandemnic, the Manager is providing service through remote working.

The objective of the Fund is to offer investors access to selected investment opportunities across a number of sectors in the UK. These investments (excepting others only for investors who elect for non-EIS qualifying investments) will benefit from EIS (Enterprise Investment Scheme) tax reliefs. Investments will be made in new ordinary shares of UK Qualifying Companies for EIS purposes and, if appropriate for any particular Portfolio Company, in alternative investments which are non-EIS qualifying (e.g. shares or loan notes for investors not seeking EIS relief).

Highlights

  • Tax Status: EIS (and non-EIS if preferred). Evergreen offer. Investment Sector: Generalist. Favourable performance scenario: £1.40 return for every £1 invested, over a 5 year period.
  • Amersham targets growth opportunities particularly in Technology, Consumer Brands and Media.
  • No front-end fees levied on investor, to help maximise tax efficiency.
  • Investing in companies with clear IP and operating in a high growth market sector.
  • Experienced and aligned management teams.

Investment strategy

Investments will be made in new ordinary shares of UK Qualifying Companies for SEIS and/or EIS purposes or where opportunities do not qualify for SEIS and/or EIS Relief those investments will be available to investors not seeking SEIS and/or EIS Relief. The Fund strategy seeks to invest in innovative, scalable business propositions where the investee company must have:

• commercially viable intellectual property as well as the capability to upscale its business over a three to five-year period

• an experienced management team with a deep understanding of the relevant market and the attributes required to generate growth and  development

• developed a robust supply chain plan and are actively seeking capital for

commercial development and expansion as opposed to just additional R&D, thus demonstrating potential for business viability

• be UK-centric with the potential to expand into overseas markets and ideally have intellectual property in place helping provide barriers to entry

Channels in which the Manager intends to invest the Fund include:-

• Consumer Brands

• Media

• Mobile and Interactive Games

• Business Relief (non-EIS)

• Services & infrastructure

As the Fund is generalist, the Manager will augment its particular own sector experience in pharma, medical devices, consumer brands and financial services through collaborations with deal originators with domain experience in other sectors and will also invest in such other sectors at its discretion.

Key team

Paul Barnes FCCA MCSI - Fund manager

Paul is a Fellow of the Association of Chartered Certified Accountants. In 2010 Paul also became a Member of the Chartered Institute for Securities & Investment. He developed and floated Tristel Plc, an infection control and hygiene products company on the LSE’s AIM Market where he is currently Chairman. Paul also developed and floated Oxford Catalysts Group Plc, now Velosys Group Plc, an innovator in synthetic fuels, on the LSE’s AIM market. He established an authorised and regulated corporate advisory firm, Beach Street Limited which was sold in 2003. Paul maintains close links with business ventures as a non-executive director for a range of companies in healthcare and pharmaceuticals, biomass renewables, consumer products and wireless software engineering (the latter for Etherstack, a company which is listed on ASX).

Michael Waller-Bridge Chartered FCSI, MInstP - Fund manager

Michael is a Chartered Fellow of the Chartered Institute for Securities & Investment. Michael co-founded Tradepoint, Europe’s first official electronic equities Stock Exchange which floated on AIM in 1996 and in 2001 became, as Virt-x, part of the Swiss Stock Exchange. He is a founder Member of the World Technology Network formed in 1998 and through to 2008 worked as an advisor with ventures including Interactive Investor PLC, an online stockbroker, Sturgeon Ventures LLP, a business incubator and regulatory consultancy, and Pre-X Capital Management, a fund management firm. Michael holds a degree in Theoretical Physics (University of Kent) and a Masters degree in History of Science (Imperial College, London University), is an elected Member of the

Institute of Physics and an accredited Member of The Association of Photographers.

Robin Black - Consultant

Robin Black ACA has a 30 year career of private equity investment, having qualified as a Chartered Accountant with Peat Marwick Mitchell (now KPMG) in London. He was a senior partner of Botts & Company (a London based private equity firm) between 1992- 2005 managing in excess of £350 million. Previously, he was an investment officer in Bankers Trust’s private equity and leveraged finance team in Los Angeles and London. Robin has also served as the CFO of The Ink Factory Ltd (a TV and film producer), was a founder director of Heartstone Inns Ltd (a UK based managed pub manager) and is a NED of a  number of privately owned businesses.

Exit strategy

The Fund will take a long-term view on the Portfolio Companies and will aim to only look at the possibility of facilitating an exit from an Investment after it has been held for at least the Three Year Period, for each type of tax advantaged investment thereby ensuring, wherever possible, that the Investment has met one of the key qualifying conditions necessary for Investors to obtain the relevant tax reliefs. However, there may be occasions where an earlier sale is a commercially sensible decision.

It is anticipated that most exits from qualifying investments in Portfolio Companies will take place after they have been held for a minimum period of four years from the date of the last investment made by the Fund, though an exit will be principally determined by market conditions and the operating performance of the Portfolio Companies. However, it should be noted that Portfolio Companies may be held for longer periods.

The Fund anticipates that the options for investors to exit a Portfolio Company may include the following:

• A sale to a third party, at arms-length, of a Portfolio Company

• The purchase by a Portfolio Company of shares held by non-Fund shareholders, subject to taxation rules

• The introduction of new investors (not EIS investors, who must buy new shares) to a Portfolio Company

• The reduction of a Portfolio Company’s share capital

• The voluntary liquidation of a Portfolio Company or the sale of a Portfolio Company’s assets and subsequent distribution of proceeds to shareholders

Fee summary

For details please refer to the Amersham Growth Fund Information Memorandum

- no upfront fees to investors

-annual management fee: 2%

-fees to investee companies upon investment 

- performance fee 20%

Risks

Investors need to be aware that their investment would be risk capital into early- stage companies. Investing in this fund should be considered in the light of an investor's personal circumstances, experience and knowledge as well as in the context of an entire portfolio.

Past performance is no guide to nor indication of future performance and early-stage companies are exposed to many factors influencing likely success or otherwise. The value of shares can go down as well as up and investors may get back less - or even none - of their original investment.

EIS shares are normally illiquid and therefore difficult to sell, if at all. EIS shares must be held for at least three years to qualify for tax reliefs that are available dependent on personal circumstances and also subject to changes in HM Government/HMRC policy.

Please see the fund's Information Memorandum for a full summary of the risks.

Documents

Only registered investors can access the documents. Receive access by registering for an account.


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